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What is an ICO and how to choose the right one for your investment

ICOs or Initial Coin Offering represent at the moment one of the best and most profitable investment opportunities in the short and long term

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ICOs represent, at the moment, one of the best and most profitable investment opportunities in the short and long term. In addition, they make it possible to guarantee the benefits if the studies are made on a good basis.

But what does an ICO stand for? Initial Coin Offering is a fundraising operation by which a company in need of financing issues tokens, to which investors subscribe mainly with cryptocurrencies.

Of course, it’s not easy to tell good ICOs from bad ones, but it is possible. You just ought to do the necessary research and study the documents provided in great detail. For maximum profitability, it will help you avoid “scams” and limit your research and studies to a small number of ICOs. Here are some useful tips on how to spot the right ICO.

Always refer to the “White Paper.”

The “White Paper” is an essential element for studying the possibilities offered by an ICO. To do this, you have to scrutinize the two documents in great detail. It may, indeed in some cases, take a little more time and effort than expected, but it is an essential phase of the investment study. It is therefore crucial not to rush through them and read them with maximum concentration and attention.

Beware that the most dubious of them will present intentionally unclear data to confuse the investor and push him to exceed the weak point of the ICO without too much attention.

One of the usual methods comes down to presenting the ICO to you as an opportunity not to be missed. They mainly rely on the fear of the investor rather than on the project itself. If you ever find yourself in such a situation, chances are the ICO is actually a trap.

Refer to the ICO calendar

As we face a multitude of new ICOs periodically, it is difficult to follow them all one by one. This is why it is recommended to turn to the ICO calendar on certain platforms, which contain all the information necessary to help you.

Even if occasionally you cannot find the information you are looking for on a particular ICO, the site is bound to contain external links that take you to the pages that contain them.

Always learn about who’s behind the project

Do your investigation before investing your money. There is a more convenient way to recognize bad ICOs without having to study the complex documents provided. Indeed, by doing thorough research on the founders of the ICO that interests you, you will have access to their history. It will help you find out if they have been involved in “scams” before.

Also, it will give you an idea of what kind of ICO you are dealing with. If you realize the team members of the project have already taken part in some dubious affair, step away and look for another ICO.

But, be careful! Just because the entrepreneurs who launch the ICO have a good history does not mean we can overlook the “White Papers”. So this is only a phase here that will allow you to limit the number of ICOs you will need to study.

It is also advisable to keep an eye on the news of the company that launched the ICO. The latter is very likely to involve risks if the company goes through a bad patch.

If, on the contrary, it is doing well, the ICO is more likely to reflect this state and gain the trust of other investors.

Thanks to forums and social networks, it’s easy to find all the important information about ICO. By following these few tips, you will maximize your chances of finding a reliable and profitable one.

 

We are a team of writers passionate about innovation and entrepreneur lifestyle. We are devoted to providing you the best insight into innovation trends and startups.

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